I got my credit report so I know who and what I owe. I was going to start next month with the lowest amounts I owe and start paying them off. Now, should I call each one ask for a settlement amount? (Each one is at least 1 year old, so I think they would settle quite easily and nicely.)
Do I ask for something in writing before I pay? So then I can prove that I paid it off. Can I ask each one to make a note on my credit report to either say I paid it in full or to remove it? (and get that in writing?)
Should I contact the original place that held the debt or do I need to contact the collection agency it is with now?
Anything else I should know before I start dealing with the collection agencies again?
Thanks a bunch! I look forward to getting my credit score up!
You need to deal with the collection agencies directly. After you pay the item off, request a letter showing you have a $0 balance, fax it to all three credit bureaus separately. (Equifax, Experian and TransUnion.) This is the fastest way to update your credit report, but it will still take around 3 months, as most places only update reports each quarter when it’s something that will benefit you.
Remember that all three companies listed above most likely have different versions of your credit report, so you need a copy from each place to make sure you’re paying off everything.
Once an item is paid in full, it will no be removed from your report for 7 years, even if you settle. It will simply show up as $0 owed.
Good job for taking care of this, but remember it could be years before you see a significant increase in your credit score. These companies are very difficult to deal with and you will spend lots of hours on the phone and emailing, faxing, etc.